A Research On The Competitive Strategy Of Chuandong Drilling & Exploration Company

The Eastern Sichuan Drilling & Exploration Co., a subsidiary of CNPC Sichuan Petroleum, is a specialized company for engineering technical service of oil drilling, well testing and work-over. It was derived from conformity of the former Eastern Sichuan Drilling & Exploration Co., Southern Sichuan Branch Co. and Eastern Sichuan Development Co., CSP in June, 2004.The company proposes in the strategic long-term planning that the total revenue of company will amount to over two billions$by 2010, more than fifty percent of which derives from international market. Having been one of the WTO members, China claims that"China will open the door of monopoly industries in its domestic market and introduce competitive mechanisms into its own system". Under this kind of economic circumstances, CNPC is faced with intense market competition. Having broken up regional protectionism of drilling engineering technical service among affiliated companies, CNPC claims that any company can equally participate in the market competition. The competition decides enterprise's success or failure. Being an administrator of the company, a few questions must be thought deeply. What factors impel the competition in the field of oil-gas drilling engineering? How does the company keep its superiority position in the intense external market? Under the existing condition, how can the company be in the lead through fast cultivating and promoting the company's competitive advantages in the market competition?On the basis of combining the company's survival with the development and taking part of real investigations as the basis, the author carefully studies the company's market competitive strategy to realize the extended business. Using quantitative and qualitative analysis, the author formulates the leading company gross cost and the difference as the company's basic competition strategy, and proposes overall planning for the following several years. The author emphasizes the fact that the company should actively respond to the fast change of the external environment, cultivate enterprise core competitive power, and extend enterprise scale by usage of diversified industry resources and structures to be the leading enterprise in the professions.The author aims at enhancing administrator's competitive consciousness by proposing some constructive suggestions on the company's strategic planning. Simultaneously hopes this paper can provide some enlightenments and references for other specialized companies engaged in engineering technical service of oil drilling, well testing and work-over. Along with society's progress, globalization advancement speedup, and development of the strategic theory, some analyses, the view points and the suggestions in this article should be keeping modified continuously.